If you thought today’s overall decline in the stock market was bad, just take a look at Chicago Bridge & Iron Company (NYSE:$CBI), which is tumbling more than 35% on the day.
To say that Chicago Bridge & Iron missed on revenue and earnings estimates would be an understatement. Revenue of $1.3 billion dropped by almost 40% year-over-year, and it missed analysts’ estimates by more than $1 billion. Seeing as analysts were hoping for earnings of 83 cents per share, the company’s reported $3.02 loss per share was quite the shock.
Even TheStreet’s founder Jim Cramer said that Chicago Bridge & Iron’s quarter was a “disaster”. He pointed out that the Netherlands-based company reduced its dividend and is spinning off its technology business in what seems to be a forced sale. To simplify, the company had far too many contracts in both the nuclear and liquefied natural gas fields and each was too hard to complete. “I still would not touch this stock,” Cramer concluded.
Chicago Bridge & Iron shares are down roughly 35% to $10.60. On the year, the company’s stock is down more than 66% and almost 70% from its 52-week highs.
The takeaway? Don’t buy CBI stock just yet.
Featured Image: twitter
